Greg Hunt says he expects power prices to come down as soon as the carbon tax is repealed.

AAP: Alan Porritt

Environment Minister Greg Hunt says scrapping the carbon tax will bring down electricity prices "immediately", despite more warnings from business that it could take time.

The Business Council of Australia (BCA) is the latest business group to warn that companies will need time to pass through any reduced costs to consumers.

Yesterday the Energy Supply Association and the Australian Industry Group both said that while the cost of the carbon tax would be subtracted from power bills, other factors could continue to influence prices.

Mr Hunt maintains he expects power bills to be lower as soon as the tax is scrapped.

"It should happen immediately," he told ABC Radio 702 Sydney this morning.

Key points

Coalition confident power prices will drop 9 per cent and gas prices 7 per cent

BCA says businesses will need at least three months to review price contracts

Hockey indicates ACCC will get extra funding to police power prices

Xenophon says ACCC should look at other reasons power has increased

"We'll look through our discussions with the electricity suppliers, but the statement from the Electricity Supply Association yesterday was clear and categorical, so I think their words are the strongest words."

The Association had written that: "Savings from [carbon tax] repeal will begin to flow through to customers almost immediately from the date of effect in competitive markets. Full savings will pass through over time."

Releasing the draft legislation to repeal the laws last month, Mr Abbott said that "the Government estimates that power prices will go down by 9 per cent, gas prices will go down by 7 per cent".

This morning, Treasurer Joe Hockey said prices will fall, but would not provide any details.

"I don't want to get into the word games about going up, going down," he told ABC Radio 774 Melbourne.

"I'll say this: prices will be less than what they would've been, because we abolish the carbon tax. It's as simple as that.

"It is a tax on energy. It was meant to increase prices and it did increase prices."

Business Council says savings could take months to flow through

In a submission to the Government, the Business Council Australia warned some savings may not be immediate, saying businesses would need at least three months to review price contracts.

It also questioned the extent of the powers proposed for the Australian Competition and Consumer Commission (ACCC) to monitor power prices.

Mr Hockey has indicated the ACCC will get extra funding to ensure energy costs do fall.

But independent Senator Nick Xenophon says the ACCC should also look at the other reasons power bills have increased in recent years.

"The fair thing to do for businesses and consumers is for the ACCC to have a broader remit, to be able to look at exactly the source of those power price rises in the first place, to what extent it could be attributed to the carbon tax, and where the business has actually passed on the full cost of that increase of the carbon tax," he said.

Hunt not attending climate change conference in Poland

Mr Hunt meanwhile has confirmed he will not be attending the latest United Nations climate talks in Poland next week.

Australia will be represented by a delegation headed by the ambassador for climate change Justin Lee.

Mr Hunt says his focus for the next two weeks will be on the resumption of Parliament.

"The first part of the delegation leaves today for Warsaw," he said.

"I think there'll be plenty of engagement with business and community over the coming weeks.

"In my case, we've got Parliament over the next two weeks and I'm dealing with the legislation for the repeal of the carbon tax."